Chapter 2.6, Problem 1LO

Summary Introduction

To discuss: The examples of strategic analysis and categorize the findings with BCG matrix and SWOT analysis.

Elements of SWOT analysis are as follows:

• Strength
• Weakness
• Opportunities
• Threats

Explanation of Solution

The strategic tools SWOT analysis and BCG matrix are very essential to the organization who seeks to attain the business goals within the competitive and eve changing marketplace and environment.

SWOT analysis:

Examples:

• An empowering and charismatic CEO Person KP who motivates ad inspires employees
• Heavy competition from Company N
• Failure in launching product that lacks the engineering expertise in fitness technology
• Roster of celebrities and top athletes endorsement
• Increasing the usage of athletic wears on every day casual use

Categorize the findings with SWOT analysis:

Figure (1)

BCG matrix:

Categorize the findings with SWOT analysis:

A wide commonly used portfolio analysis framework was developed by the Person Boston Consulting Group (BCG).

The planners will classify them using the 4 quadrants as stars, Question marks, Cash cows, and dogs.

A high relative market share in high growth potential comes under stars.

A low market share with high growth rate comes under question

If company generates little profit and it will come under the head dogs and when it generates storing cash flow then it will come under the head cash cows